For the second time in three months, J.P. Morgan Securities Corp. on Friday led a note offering for Hertz Corp., the world's largest rental car company.

Hertz is a longtime client of Morgan's commercial banking arm, Morgan Guaranty Trust Co.

Morgan has been building up its securities underwriting business on the strength of corporate client relationships forged through its commercial banking activities.

In the first half of this year, Morgan ranked seventh among lead underwriters of nonconvertible domestic corporate bonds, according to Securities Data Co., an American Banker affiliate.

To Repay 1987 Loan

Proceeds from Friday's $400 million offering will be used to repay a Morgan-led bank loan for Hertz's parent, Park Ridge Corp. The loan was made in 1987.

Park Ridge, which is being merged into Hertz, is owned by Ford Motor Co., Volvo, Hertz management, and Commerzbank.

Friday's offering of junior subordinated notes was in two parts: a $150 million issue of 6.625% notes due July 15, 2000, and a $250 million issue of 7% notes due July 15, 2003. The seven-year notes were priced at 99.94 to yield 6.64%, and the 10-year notes were priced at 99.88 to yield 7.02%.

In April, Morgan led an offering of $1 million of 6.5% notes for Hertz.

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